Employers18 June 2018

Amnesty for employers: Super guarantee under-payments

Emma
Emma
Author

The Federal Government recently announced that employers would be offered a one-off, twelve month amnesty for historical underpayment of super guarantee (SG) payments.

Minister for Revenue and Financial Services, Kelly O’Dwyer, announced the Superannuation Guarantee Amnesty, saying ‘the Australian Taxation Office estimated that in 2014-15, around $2.85 billion in super guarantee payments went unpaid.’

Although it’s encouraging to see that 95% of employers had done the right thing by their workers, it still leaves a lot of employees who, down the track, will see the impact of being short-changed during their working years.

The Amnesty, which commenced on 24 May, is intended to encourage employers to come forward and pay any unpaid super in full, without repercussion. Without the Amnesty, employers face high penalties if they’re caught (a minimum 50% on top of the SG that they owe).

‘We are introducing this one-off Amnesty to allow employers to wipe the slate clean and pay their workers what they’re owed.’

Catch-up payments made in the twelve month period will be tax-deductible. To be eligible for the Amnesty, and avoid harsher penalties, you must:

  • disclose your SG shortfall amount including nominal interest to the Australian Taxation Office within the twelve month Amnesty period
  • not be subject to an audit of your SG for the relevant periods.

To take advantage of the Amnesty with an added benefit of not paying any general interest charged, you need to:

  • make full payment of the shortfall and nominal interest to your employees' super fund (or funds)
  • complete and lodge the SG Amnesty Fund payment form.

If you think you've underpaid your workers and need some help sorting it out, simply contact us on 1800 005 166 or you can email us at info@tasplan.com.au.

End of financial year cut-off ...

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